Nairametrics
  • Home
  • Exclusives
    • Financial Analysis
    • Corporate Stories
    • Interviews
    • Investigations
    • Metrics
  • Markets
    • Cryptos
    • Commodities
    • Equities
      • Dividends
      • Stock Market
    • Fixed Income
    • Market Views
    • Securities
  • Industries
    • Company News
    • Consumer Goods
    • Content Partners
    • Corporate deals
    • Corporate Press Releases
    • Energy
    • Entertainment
    • Financial Services
    • Hospitality & Travel
    • Manufacturing
    • Real Estate and Construction
    • Tech News
  • Economy
    • Get Data
    • Macro-Economic News
    • Research Analysis
  • Business News
  • Financial Literacy
    • Career tips
    • Personal Finance
  • Lifestyle
    • Billionaire Watch
    • Profiles
  • Opinions
    • Blurb
    • Op-Eds
No Result
View All Result
  • Home
  • Exclusives
    • Financial Analysis
    • Corporate Stories
    • Interviews
    • Investigations
    • Metrics
  • Markets
    • Cryptos
    • Commodities
    • Equities
      • Dividends
      • Stock Market
    • Fixed Income
    • Market Views
    • Securities
  • Industries
    • Company News
    • Consumer Goods
    • Content Partners
    • Corporate deals
    • Corporate Press Releases
    • Energy
    • Entertainment
    • Financial Services
    • Hospitality & Travel
    • Manufacturing
    • Real Estate and Construction
    • Tech News
  • Economy
    • Get Data
    • Macro-Economic News
    • Research Analysis
  • Business News
  • Financial Literacy
    • Career tips
    • Personal Finance
  • Lifestyle
    • Billionaire Watch
    • Profiles
  • Opinions
    • Blurb
    • Op-Eds
No Result
View All Result
Nairametrics
No Result
View All Result
Home Business News

Shoprite lays off 115 workers, shuts down second branch in 5 months

Ruth Okwumbu-Imafidon by Ruth Okwumbu-Imafidon
August 5, 2020
in Business News
Shoprite’s sales drop by 8.1% in Nigeria in H2 2019 over Xenophobic attacks

Shoprite.

Share on FacebookShare on TwitterShare on Linkedin

Barely three days after announcing a planned divestment from of its Nigerian operation, Shoprite Holdings has informed workers’ union in Kenya that it will be laying off 115 staff effective August 31, 2020.

The job cuts follow the closure of City Mall branch in Nyali, Mombasa, the second branch to be closed in Kenya within a period of five months. Shoprite has cited reduced patronage for its decision to close down the outlets.

READ MORE: CBN retains Loan to Deposit Ratio at 65% 

According to a report, Shoprite sent a notice to the Kenya Union of Commercial Food and Allied Workers (KUCFW). Part of the notice said:

“Endeavour to continue trading at the Nyali branch is no longer viable. Financial and other data will be provided and discussed at a proposed meeting. It is contemplated that the intended date of termination on account of redundancy will be August 31, 2020. There are currently 115 persons employed at the branch of which 92 are members of KUCFW.”

More details: Earlier in April, Shoprite had also closed Karen Branch, Nairobi, laying off no less than 104 workers in the process. These closures will most likely constrain Shoprite’s expansion efforts across the East African country.

Nairametrics understands that Shoprite opened operations in Kenya back in 2018, with hopes of taking advantage of the country’s disorganised retail sector. Unfortunately for Shoprite, it has recently had to combat increased competition from cash-rich retailers such as Naivas and Carrefour.

READ ALSO: Eid-El-Kabir: Nigerians witness many cases of PoS payment failure due to network disruptions

Note that other smaller competitors in the country have also had to close branches due to lack of profitability.

Meanwhile, Shoprite recently had to deal with a lawsuit from the billionaire Muguku family, which owns Waterfront Mall. The Muguku family was seeking Sh520 million in lost rent after the retail chain cut short its tenancy at the mall.

The Backstory: The retail giant announced on Monday that it will divest from its business operations in countries outside South Africa, due to low profitability. An internal memo sent to its staff in Nigeria on July 31, 2020, disclosed that the new owners of the Nigerian subsidiary will work with the management to drive the expansion plans in Nigeria.

READ MORE: Tax debt payments extended to August 31- FIRS

The company has been reviewing its long-term options in Africa after currency devaluations, supply issues, and low consumer spending in Angola, Nigeria, and Zambia began to weigh on earnings.

There are speculations and fears that this new move in Nigeria could result in job cuts, especially if the new owners decide to make adjustments to the business model.

 

Related

Tags: Business NewsKenyaShoprite

Comments 3

  1. Anonymous says:
    August 6, 2020 at 7:03 am

    Until read, i taught you were talking about Shoprite leaving Nigeria. My conclusion about your write-up is that you look for ways to gravitate people to opening your report by giving a a HEADING that is misleading. Why can’t you just say Shoprite in Kenya laid………….?

    Reply
    • John Nwosu chukwuma says:
      August 8, 2020 at 8:27 am

      @anonymous, that’s the tricks in journalist. The headline captures your attention to an article, it may not necessarily be what you intended it to be, but may latter satisfied after reading the article. Haven’t you heard of, “SENSATIONALISM” in journalism before?

      Reply
  2. Anonymous says:
    August 7, 2020 at 3:40 pm

    You article is a stupid clickbait article. You are descending to the level of all the rest of the newspapers both online and print media. This is a deceptive and stupid ploy. I have lost respect for you and nairametrics.

    Reply

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Hot forex
Cornerstone
Mega Millions
Polaris Bank
Eco Bank
Access Bank
Bankers Committee
First bank


FCMB
Ikeja Electrics




    Business News | Stock Market | Money Market | Cryptos | Financial Literacy | SME |

    Recent News

    • Asia’s richest billionaire, Gautam Adani pledges $8 billion to social causes to mark his 60th birthday
    • Altcoins gain 90% in the last 7 days
    • US stock market gainers for the past week

    Follow us on social media:

    Recent News

    Gautam Adani, owner of India’s biggest port operator, loses $12.4 billion in a day

    Asia’s richest billionaire, Gautam Adani pledges $8 billion to social causes to mark his 60th birthday

    June 26, 2022
    Here are the best strategies for cryptocurrency trading that you should know

    Altcoins gain 90% in the last 7 days

    June 26, 2022
    • ABOUT US
    • CONTACT US
    • PRODUCTS
    • ANDROID APP
    • iOS APP
    • DISCLAIMER
    • CAREERS
    • PRIVACY POLICY

    © 2022 Nairametrics

    No Result
    View All Result
    • Home
    • Exclusives
      • Financial Analysis
      • Corporate Stories
      • Interviews
      • Investigations
      • Metrics
    • Markets
      • Cryptos
      • Commodities
      • Equities
        • Dividends
        • Stock Market
      • Fixed Income
      • Market Views
      • Securities
    • Industries
      • Company News
      • Consumer Goods
      • Content Partners
      • Corporate deals
      • Corporate Press Releases
      • Energy
      • Entertainment
      • Financial Services
      • Hospitality & Travel
      • Manufacturing
      • Real Estate and Construction
      • Tech News
    • Economy
      • Get Data
      • Macro-Economic News
      • Research Analysis
    • Business News
    • Financial Literacy
      • Career tips
      • Personal Finance
    • Lifestyle
      • Billionaire Watch
      • Profiles
    • Opinions
      • Blurb
      • Op-Eds

    © 2022 Nairametrics

    Social Media Auto Publish Powered By : XYZScripts.com